Motilal Oswal (MOTILALOFS) | News Based Sentiment Analysis

• On September 8, 2025, Motilal Oswal Financial Services Ltd. reported a year-on-year revenue decline of 1.63% to ₹1,669.16 crore in the June quarter, but impressively grew its profit by 31.77% to ₹1,162.06 crore year-on-year, demonstrating strong profitability despite a slight dip in revenue. This was further bolstered by a significant quarter-on-quarter revenue growth of 127.06%, the highest in the last three years.
• Motilal Oswal strategically deployed capital, acquiring 7,54,97,341 Compulsorily Convertible Preference Shares in Zepto Private Limited for ₹400 crore on September 2, 2025, reflecting confidence in the quick commerce sector’s growth potential, as Zepto’s turnover increased from ₹140.70 crore in FY 2022 to ₹4,454.52 crore in FY 2024.
• Following the government's GST rate rationalization effective September 22, 2025, Motilal Oswal upgraded its rating for Colgate-Palmolive from 'Neutral' to 'Buy', citing a ~35% correction over the past 12 months and attractive valuation with P/E ratios of 46x and 41x for FY26 and FY27 respectively. They anticipate a 12% effective GST reduction for Colgate, and expect 200-300 bps of volume growth across the sector.
• Motilal Oswal reaffirmed its 'Buy' rating for Suzlon Energy on September 1, 2025, projecting a 42% upside with a target price of ₹80, while simultaneously upgrading Phoenix Mills to a 'Buy' rating with a revised target price of ₹2,044, signaling continued positive outlook for both companies.
• Despite positive ratings and strategic investments, investor activity on the INDmoney platform showed a -40.73% drop in investment in Motilal Oswal Financial Services Ltd. shares over the past 30 days (August 4, 2025, to September 3, 2025), alongside a -34% decrease in search interest, indicating short-term investor hesitancy.
• A weekly MACD crossover appeared for Motilal Oswal Financial Services Ltd. on September 5, 2025, signaling a potential "Sell Signal" and suggesting bears might dominate, with an average price decline of -12.13% historically observed within 7 weeks of this signal.
• Motilal Oswal recommended Swiggy and Phoenix Mills as top stock picks on September 8, 2025, assigning a "BUY" rating to Swiggy with a target price of INR 560 and reiterating a "BUY" rating for Phoenix Mills with a target price of INR 2,044, projecting revenue/EBITDA/PAT CAGR of 17%/27%/50% respectively over FY25–27 for Phoenix Mills.

The Investment Story: September was a month of strategic investments and positive ratings for key holdings by Motilal Oswal, contrasted by a concerning decline in investor interest in its own shares and a bearish technical signal. The company demonstrated strong profitability despite a slight revenue dip.

What It Means for Investors: The investments in growth sectors like quick commerce and positive outlook on Suzlon and Phoenix Mills suggest a long-term growth strategy, but the declining investor activity and bearish signal warrant caution and close monitoring of the stock's performance. The strong profit growth in Q1 is a positive sign, but the revenue decline needs to be watched.

Looking Ahead: Investors should monitor Zepto’s performance, track changes in investor sentiment towards Motilal Oswal’s stock, and observe the impact of the GST rate rationalization on Colgate-Palmolive’s performance. Further developments in the banking sector, as highlighted by their top picks, will also be important.

The Bottom Line: Motilal Oswal appears to be strategically positioning itself for growth, but the mixed signals – strong financial results alongside declining investor engagement – suggest a need for a cautious yet optimistic approach.